The NBA faces a lawsuit resulting from its promotional associations with the now-defunct cryptocurrency change Voyager Digital Holdings Inc.
In response to buyers, the partnership is chargeable for monetary damages amounting to $4.2 billion. In response to Bloomberg studies, accusations of extreme negligence have been leveled towards the NBA for its promotional settlement involving Voyager and Mark Cuban, the earlier Dallas Mavericks’ majority proprietor.
The authorized motion follows a previous lawsuit towards Cuban for his endorsement of what’s now deemed a fraudulent and unregulated enterprise. In 2022, buyers charged Mark Cuban with deceit over Voyager’s safety assurances, alleging that his representations contributed to their monetary losses. Cuban has dismissed these accusations as fully unfounded.
Moreover, the Commodity Futures Buying and selling Fee has pursued authorized motion towards Voyager’s co-founder Stephen Ehrlich, accusing him of misleading practices in managing a digital asset buying and selling and custody platform. Ehrlich has countered these allegations, claiming his designation as a “scapegoat” for others’ misconduct.
The lawsuit highlights a broader development of NBA groups participating in promotional actions with cryptocurrency entities, together with the beleaguered FTX change. FTX’s collapse led to fraud convictions for its founder, Sam Bankman-Fried.